H.R. 996 · Where this bill is now
In committee
Introduced in the House, sent to the Committee on Ways and Means, Feb 5, 2025
What this bill does
In plain words · AI-written from the official summaryMakes paid family leave tax credit permanent
Right now, companies can get a tax credit for providing paid family and medical leave, but only through 2025. This bill makes that credit permanent so employers can count on it long-term. It also expands who qualifies by letting companies claim the credit for employees who've worked there for at least six months instead of one year, and it allows them to claim the credit for either wages paid during leave or insurance premiums for paid leave coverage.
How it affects you
If you work for a company that provides paid family or medical leave, this bill could encourage your employer to keep or expand that benefit since the tax incentive becomes permanent. Small business owners and larger employers offering these benefits would have a clearer, lasting reason to do so. The bill also requires outreach to help employers understand the credit, which could mean more companies learn about and use it.
Read the official summary (Introduced in House, Feb 5, 2025)
Paid Family and Medical Leave Tax Credit Extension and Enhancement Act
This bill makes the paid family and medical leave tax credit permanent, expands eligibility for the credit, requires outreach to increase awareness of the tax credit, and makes other changes to the credit.
Currently, an eligible employer may claim a tax credit (through 2025) for up to 25% of wages paid to a qualifying employee (who has worked for the employer for one year or more) while the employee is on family and medical leave.
The bill makes the tax credit for paid family and medical leave permanent and allows an eligible employer to claim the tax credit for 25% of either (1) wages paid to a qualifying employee while the employee is on family and medical leave, or (2) premiums paid for paid family or medical leave insurance.
The bill also
• allows an employer to provide family and medical leave to an employee who has worked for the employer for six months or more,
• provides that leave that is paid by a state or local government or required by state or local law must be taken into account in determining the amount of leave provided by the employer but may not be counted when determining the amount of the credit, and
• provides a limited exception to the requirements related to written family and medical leave policies.
Finally, the bill requires targeted outreach to employers and other relevant parties regarding the availability and requirements of the tax credit.
Written by AI (Claude) using only the official summary by the Congressional Research Service, the Library of Congress’s nonpartisan research staff. It can miss nuance, so check the official summary and the bill text for details.
1st SessionH. R. 996
A BILL
Paid Family and Medical Leave Tax Credit Extension and Enhancement Act
Sponsor: Rep. Randy Feenstra (R-IA-4) · Introduced Feb 5, 2025 · Taxation · 1 version of the text
Sources: Congress.gov actions and votes · bill text from GovInfo · latest official action Feb 5, 2025: “Referred to the House Committee on Ways and Means.”